A large part of Nigeria’s wealth is locked in abandoned and unused properties, adding to the country’s housing problems. According to PricewaterhouseCoopers (PwC) Nigeria, these properties, known as “dead capital,” are worth over $900 billion.
In its report titled “Nigeria Economic Outlook: Seven Trends Shaping the Economy in 2024,” PwC revealed that a huge portion of this dead capital is tied up in residential real estate and agricultural land, including about N230 billion in abandoned government properties.
Nigeria faces a housing shortage of around 28 million units, but demand remains low because of high rent, construction costs, and decreasing disposable income. Dead capital refers to assets that can’t be easily used or sold, often due to unclear ownership or legal issues. In Nigeria, many properties lack proper documentation, making it hard for owners to prove ownership and access loans or investments.
Digital Experience Technology Limited estimates Nigeria has over 100,000 abandoned buildings, mostly in cities like Lagos, Abuja, and Port Harcourt. These empty buildings affect the real estate market, lowering property values and increasing crime in the surrounding areas.
Notably, the Federal Secretariat Complex in Ikoyi, Lagos, a multi-level building once considered a national pride symbol, is now abandoned. Similarly, the nearby Ikoyi Towers, a federal government property comprising three blocks of 12 floors, also remains unused. These multi-billion-dollar investments are wasting away when the country faces a severe affordable housing crisis.
Experts, including Chudi Ubosi from Ubosi Eleh & Co., highlight that Nigeria has over 56,000 abandoned government projects across the country. For instance, the South East has around 15,000, the South-South 11,000, and Abuja has about 2,000 of these abandoned projects. They believe that by improving land ownership rules and creating public-private partnerships, these unused properties could boost the economy.
In 2023, the Minister of Housing and Urban Development, Ahmed Dangiwa, announced plans to set up a National Land Commission to fix land administration issues. The government is also working on unlocking $300 billion worth of dead capital through real estate reforms and partnerships.
Revitalizing these dormant assets offers immense economic potential, with the ability to boost GDP, create jobs, and alleviate the nation’s housing deficit. However, substantial investments and structural reforms are necessary to realize these benefits fully.
